Corona, Modelo beers power Constellation's profit beat

Constellation Brands Inc's quarterly profit blew past Street estimates as sales of beers under its Corona and Modelo brands rose and a strong dollar helped cut production costs.

Shares of the company, which also raised its full-year adjusted profit forecast for the second time, rose 3 percent to a record high of US$135.30 on Wednesday.

Constellation's net beer sales rose 14 percent to US$1.02 billion in the second quarter ended Aug. 31, accounting for about 59 percent of net sales.

The company is benefiting from strong demand from the rising Hispanic population in the United States who prefer the company's beer brands such as Modelo Especial and from other consumers switching to premium Mexican beers.

Constellation said in June it will invest more than US$2 billion in its Mexican operations to expand its bottling and brewery plant in Coahuila.